The way in which Javier Milei intervened in politics and popularity was through his innovative ideas, his extravagant ways, but above all through the application of economics and economic policies that captured and magnetized most of a society tired of years of decadence.
Since its appearance, some terms such as inflation and deficit, among others, began to be left aside or used less and less, but at the same time others that had not been used in Argentina for more than 20 years began to be incorporated. . One of them is “deflation.”
Deflation is the exact opposite, or rather the opposite, of inflation. It means that with the same amount of money you can buy more products, the currency appreciates, you can buy more things and, consequently, you begin to be “richer.” To give clear examples: with the same money you had, instead of buying a strip of bread you can buy a strip and a half; Instead of one can of tuna, it would be enough for two.
Let’s begin to describe the five keys to the new Argentina that is coming:
For consumers, deflation means increased purchasing power. This is generated by the price decreasethe product offering is greater and competition is growing, so the choice of products consumed is more selective, more defined and provides greater consumption options.
Another variable that favors both consumers and companies and SMEs is that it stimulates saving. This occurs because, by being able to buy a greater quantity of products with the same money, the surplus is saved, which allows reducing the financial expense of operations that were previously paid in installments or leveraged with credits; It also promotes investment and growth.
The innovation It is the third key to this new Argentina. Savings allow companies to plan and find new ways of operating, which is why investment in technology and research and development promotes an increase in the creation and development of new opportunities.
At the international level, something that this situation allows is that it promotes free competition, seeking to improve international relations, relationships with suppliers and improving the use of resources. In a country that links and promotes growth, the opportunity to compete with other markets and with other products and the possibility of seeking new suppliers or investors are a great way to take advantage of it.
However, and no less important, the fifth key is that this new Argentina also has certain issues that should concern it and that it should work to avoid: they are the economic stagnation and unemploymentif the phenomenon lasts for a long time.
That is why it is essential to control and take care of this last key, because time is a variable that at first plays a positive role, but that in the long term, and without adequate investments, can generate a negative effect in companies and SMEs. difficult to reverse quickly.
Today the country, large companies, SMEs and consumers are beginning to walk a path of lower inflation and in some cases deflation. This new Argentina has, in principle, these five fundamental keys to what it is seeking to become: a prosperous and capitalist country.
At the moment, not much is being said about these issues, because inflation still affects us every day; Furthermore, after what Argentines have experienced in recent years, it is difficult to believe or understand that there are other alternatives and that, furthermore, they could be better than the ones we had.
For now, “deflation” is not the buzzword, but knowing what the future holds is the best way to predict it: anticipate and be proactive about what lies ahead.
